Why Are ON Shares Falling After-Hours Today?

ON Semiconductor Corp. projected revenues between $1.435 billion to $1.535 billion for the first quarter of 2026, with the midpoint coming in lower than street expectations of $1.5 billion.

• The company posted Q4 revenues of $1.53 billion, in line with street expectations, based on data from Fiscal.ai.
• The company posted diluted earnings per share of $0.64, higher than street expectations of $0.62.
• In an earnings call with investors, ON Semiconductor said that artificial intelligence data centers are emerging as a key growth driver for the company.

Shares of ON Semiconductor Corp. (ON) declined nearly 6% after-hours on Monday after the company reported fourth-quarter (Q4) 2025 results and projected guidance for the upcoming quarter largely in line with expectations.

ON Semiconductor posted Q4 revenues of $1.53 billion, about 11% lower than the same period last year, but in line with street expectations, based on data from 29 analysts on Fiscal.ai.

The company posted diluted earnings per share of $0.64, marginally higher than street expectations of $0.62, as per Fiscal.ai data.

2025 Highlights

In 2025, ON Semiconductor reported cash from operations of $1.8 billion and free cash flow of $1.4 billion, achieving a record-high free cash flow margin of 24%.

In Q4, the company also announced a new share repurchase program of up to $6 billion over the next three years.

“We remained disciplined in our execution and met expectations in the fourth quarter as we saw increasing signs of stabilization in our key markets,” said Hassane El-Khoury, President and CEO at the company.

“We continue to invest in intelligent power and sensing technologies that position us to win in the most critical technology transitions shaping our industry," El-Khoury added.

AI Data Centers

In an earnings call with investors, ON Semiconductor said that artificial intelligence data centers are emerging as a key growth driver from the company, after having generated more than $250 million in revenue in 2025 amid accelerating demand for AI compute infrastructure.

The management also added that AI was one of the fastest-scaling growing opportunities for the company due to strong customer interest in higher-voltage power architectures and rising design activity.

“AI data center is increasingly becoming a meaningful growth engine for the company,” El-Khoury said to investors.

Q1 2026 Guidance

Meanwhile, the semiconductor company projected revenues between $1.435 billion and $1.535 billion for the first quarter of 2026, with the midpoint of $1.49 billion of the estimate coming in lower than street expectations of $1.5 billion.

The company also said it estimates EPS for the upcoming quarter to be between $0.56 and $0.66 per share, with the mid-point coming in line with street estimates of $0.61 per share.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ON shares jumped from ‘neutral’ to ‘bullish’ territory over the past 24 hours amid ‘high’ message volumes.

Shares of ON have climbed over 38% in the past year.

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